Germany In Talks To Make Ukraine ‘Whole’ For Losses From Russian Pipeline, Blinken Says

June 07, 2021 18:01 GMT – By RFE/RL

Germany is discussing ways to compensate Ukraine for the financial loss it will suffer from the completion of a controversial Russian natural-gas pipeline backed by Berlin, U.S. Secretary of State Antony Blinken has told Congress.

Nord Stream 2 will carry gas from Russia to Germany via the Baltic Sea, bypassing Ukraine, and is expected to deprive Kyiv of billions of dollars in annual transit fees if it is completed.

The United States — as well as many countries in Eastern Europe — have opposed the project on the grounds that it will make Europe more dependent on Russian energy and undermine Ukraine’s economy and security.

Nonetheless, the Biden administration last month agreed to waive some sanctions on Nord Stream 2, all but ensuring its completion, in an attempt to mend strained relations with ally Germany, which continues to support the project.

In a hearing on June 7 at the House of Representatives’ Foreign Relations Committee, Blinken partially justified the waiver, saying Germany “has come to the table” to discuss how it can help Ukraine deal with the economic fallout.

“We are actively engaged with [Berlin] to look at what can and should, and I believe must be done to…make sure that the transit fees that Ukraine at some point in the future may lose as a result of this pipeline…[is] made whole,” Blinken told the committee.

He did not give details on what form the compensation could take. Some have suggested Germany could invest in Ukraine’s alternative-energy industry.

Blinken also said it was important to have upfront agreements in place with Germany that would allow the United States to impose sanctions on the pipeline at a later date should Russia seek to use it as a coercive tool against its neighbors in Eastern Europe.

U.S. President Joe Biden and Ukrainian President Volodymyr Zelenskiy were expected to discuss the pipeline in a phone call later in the day.

https://www.rferl.org/a/germany-compensation-ukraine-blinken/31295014.html

7 comments

  • Its not just transit fees for Ukraine, that’s actually a small part of it, its also defense because Putler has fewer reasons to be civilized if his gas has an alternate route. But the Germans never listened nor addressed this concern.

    Liked by 4 people

    • Ukraine has trillions of cubic meters of gas ready to be extracted. All it needs is investment and US knowledge to extract it. Of course, certain people in Ukraine that are making huge profits by acting as middlemen buying gas for Ukraine are against this.

      Liked by 4 people

      • I seem to remember the US was doing some preparatory work for shale extraction. I remember it because it was in my backyard of L’viv oblast towards the Carpathians. I would have thought elsewhere.

        Liked by 3 people

        • Ukraine has Europe’s third-largest shale gas reserves at 1.2 trillion cubic meters (tcm). There are two potentially large shale gas fields. The Yuzivska gas field located in Donetsk Oblast (province) and Kharkiv Oblast; and the Olesska field in Lviv Oblast and Ivano-Frankivsk Oblast. Ukraine signed a shale gas 50-year production sharing agreement with Royal Dutch Shell on 25 January 2013 involving the Yuzivska gas field. The $10 billion deal was the largest foreign direct investment ever for Ukraine. Full shale gas production depends on successful results from 15 test wells. Ukraine expects commercial shale gas extraction in 2017.[nb 7] On 13 September 2013 Ukrainian Prime Minister Mykola Azarov stated that the (containing all expenditures) price of shale gas will be $120–130 per 1,000 cubic meters.

          Liked by 4 people

  • This is just nuts and berries. German Schweinehunde have not even paid compensation for their devilry in WW2. Now, true to form, they collaborate with another nazi demon.

    Liked by 4 people

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